Close Change USD/KRW 1,129.10 +3.30 JPY/KRW 13.9120 -0.0870 3-Year Treasurys 3.44% -1 bp 5-Year Treasurys 3.55% -2 bps 10-Year Treasurys 3.82% -1 bp 20-Year Treasurys 3.93% unchanged SEOUL (Dow Jones)--The South Korean won was lower against the U.S. dollar late Monday in Seoul as recent spikes in global oil prices spurred worries over the health of the global economy. Benchmark April Nymex crude oil futures fell slightly in Asian trade, but remained close to $110 per barrel, hurting sentiment toward South Korean shares and its currency because of the country's high dependency on crude imports. The local stock index ended 1.4% lower at 1991.16 Monday. But dollar selling by local exporters, including shipbuilders, capped the dollar's upside. The dollar traded between KRW1,125.00 and KRW1,130.00 Monday. Market participants said investors are becoming more optimistic about the euro-zone debt crisis as the European Central Bank's second long-term refinancing operation is expected to help regional financial institutions' liquidity conditions, but downside risks stemming from surging oil prices could hurt risk appetite for a while. "Local equities have been losing their upward momentum as foreign investors' net purchases falter a bit. I am not sure if foreigners are going to start actively selling local equities and relocate their money to the other markets, but their moves will be closely watched for the next few days," said a trader at a local bank. The trader added that the Korean won may continue to face downward pressure against the dollar following a rally in January. He tipped the dollar's next critical resistance levels at KRW1,130 and at KRW1,150. Korea government bonds were higher amid weak appetite for risk, which was reflected in the local stock market's decline. While the impact of the European debt crisis on the local bond market has faded, expectations the domestic economy will turn in a weak performance in the months ahead are likely to support bond prices, said Kim Sang-hoon, a fixed-income analyst at Hana Daetoo Securities. "Industrial output is expected to shrink on an on-month basis," while global economic conditions for South Korea's exports remain unfavorable, Kim said. January industrial output data is due on Wednesday. He added the three-year bond yield is expected to trade in a 3.38%-3.48% band this week. Lead March futures ended four ticks higher at 104.26. -By Jieun Shin, Dow Jones Newswires; 822-3700-1905; jieun.shin@dowjones.com

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